Hong Kong's third-quarter GDP grows 3.8pc on robust exports

Hong Kong's economy grew 3.8 percent year-on-year in the third quarter, buoyed by robust exports and a recovering tourism sector, according to advance estimates from the Census and Statistics Department.

The third-quarter economic growth rate was 0.7 percentage points higher than the previous quarter. On a seasonally adjusted quarterly basis, real gross domestic product increased by a further 0.7 percent.

The Hong Kong economy demonstrated vibrant performance in the third quarter, driven by continuously strong exports and expanding domestic demand. Total goods exports recorded a substantial 12.2 percent year-on-year increase in real terms, while imports rose by 11.7 percent. Services exports grew 6.1 percent year-on-year, though this marked a slowdown from the 8.6 percent growth seen in the second quarter. Services imports increased 2.6 percent in real terms, compared to a 7.3 percent rise in the preceding quarter.

Private consumption expenditure rose 2.1 percent year-on-year, accelerating by 0.2 percentage points from the last quarter. Government consumption expenditure saw a 1.6 percent real-term increase, moderating from the 2.5 percent growth in the previous quarter.

A government spokesperson attributed the continued significant growth in overall goods exports to strong demand for electronics and buoyant regional trade flows. Services output also expanded noticeably, supported by sustained growth in visitor arrivals and active cross-border financial activities amid rising global stock markets.

Locally, private consumption spending grew further. Overall investment expenditure growth accelerated alongside economic expansion and a stabilizing residential property market.

Looking ahead, the spokesperson stated that Hong Kong's economy is expected to see further steady growth for the remainder of the year, supported by anticipated sustained export demand and the US restarting interest rate cuts. 

However, the spokesperson added that external uncertainties, particularly the ongoing impacts of trade barriers on the global economy, international trade, and financial conditions, require close monitoring.

In other news, the government announced a HK$103.2 billion deficit for the first half of the fiscal year as of the end of September, attributing it to the fact that major revenue sources such as salaries tax and profits tax are mostly collected in the latter part of the fiscal year.

Figures show that total expenditure and revenue for the period were HK$373.2 billion and HK$235.2 billion, respectively. The government raised HK$61.6 billion from bond issuance, while HK$26.8 billion was used to repay bond principals.

As of the end of last month, fiscal reserves stood at HK$551.1 billion.